Pricing Roundup: Breakdowns for Monday, Loom, and Klaviyo
Plus: Updates from Datadog, 1Password, and Deel.
Welcome to Good Better Best!
This week we’re doing a quick round up on recent pricing moves, and a few articles I came across that made me think.
Let’s get to it.
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🚨 SaaS Product and Pricing News
Datadog added Data Streams Monitoring to its Applications navigation.
Confluence increased the maximum user limit.
Deel introduced new Add On plans.
1Password launched on the AWS Marketplace.
Aftershoot introduced a Black Friday discount.
📰 Pricing News
Over the past few weeks there have been a number of moves by big SaaS names that I’ve been wanting to double click on. Some quick notes below.
Monday raised the number of default users.
This is a move I’ve seen a few times recently. Jira recently did it, raising default users from 10 to 300 (a wild jump) which aligns well with recent earnings call commentary around going upmarket.
In Monday’s case, they raised the default number of users from 3 to 10. This can do a couple things:
It signals to visitors whether or not they're in your ICP. Monday is clearly looking to target higher ACVs. They also changed the “Most Popular” banner from the Standard plan to the Pro plan, which is probably the case for customers with 10 users.
It can improve pricing optics. Not the case for Monday, but when Jira adjusted their users, the volume discount meant that the default price points were lower. This is great for those large customers they’re looking to attract that might have been scared off by the previous price points.
This falls into a wider bucket of “price steering” and how to use defaults to drive users to your preferred plan — something I recently chatted about with GBB subscriber Ajay Arora, who runs product and monetization for Disney’s streaming products.
I want to write more about this soon — if you have experience testing defaults, hit reply or DM me.
Loom introduced a new AI plan.
We’ve been tracking AI pricing all year, and while Usage-Based and Outcome-Based pricing are growing more popular, a tiered strategy remains the most widely adopted approach across our index.
Loom’s approach offers a nice contrast to Notion, which monetizes AI as an $8 Add On. The difference is Notion offers a perpetual free plan that users can stay on forever. The add-on gives them a way to monetize their massive Freemium base.
Loom offers a Faux Freemium plan, which means there’s a usage constraint (25 videos), basically a different version of a free trial. In their world, an Add On doesn’t make sense, since free users would run out of videos anyway.
The new tier gives them a straightforward way to monetize AI for business users (would assume it’s included in all Enterprise plans as well).
Also, gotta shoutout Loom for sneaking a pricing increase for the Business plan in there as well 🔥
Klaviyo added detail to the SMS + Email plan
Klaviyo is truly multi-product, and they’re leaning into the impact their customers are seeing when they adopt both email and SMS. Some cool callouts:
Klaviyo highlights that brands see a 19% increase in GMV when they utilize both channels.
They offer an in-plan pricing calculator, which is something I think I’ve only seen once before (pretty sure it was Snyk).
The focus on both channels matches the hero copy on their homepage, which highlights both.
Love the alignment here, and the execution. The copy at the top of the plan is basically a way to share economic value without a complicated ROI calculator. The pricing calculator is very intuitive as well.
🗂️ Resources
Also came across a few good reads for your Saturday morning coffee.
Should I publish my price?
The Price Theory crew wrote a great post on the tradeoffs of price transparency, and the factors you should consider. (PS. They shared this in the GBB chat, join for free to get in on the conversation).
New AI Pricing Models
Constellation Research covered new Gen AI pricing models for ServiceNow and Adobe, highlighting some of the different models we should expect to become more normal (Add Ons, Credits).
Oldie but a Goodie
Revisited this old eBook from Patrick Campbell called The Guide to Happier Customers. Some great takes on product, pricing, and customer success in here.
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